Overview
Register with HMRC before leaving the UK
Landlords who leave the UK for more than 6 months must register with the HMRC Non-Resident Landlord scheme before their departure. Without NRL approval, your letting agent (or tenant if you have no agent) must deduct basic rate income tax from rental payments and pay it to HMRC quarterly.
What is the Non-Resident Landlord scheme?
- The NRL scheme is HMRC's mechanism for taxing UK rental income received by non-resident landlords, those who spend 6 months or more outside the UK in a tax year
- Under the scheme, letting agents (or tenants if there is no agent) are required to deduct basic rate income tax (currently 20%) from rental payments and pay it to HMRC quarterly, unless the landlord has received NRL approval
- NRL approval: a landlord who registers with the scheme and receives HMRC approval can receive rental income gross (no deduction), they then account for the tax themselves via self-assessment
- The scheme applies to non-resident individuals, companies, and trustees who receive UK rental income
- Residency for NRL purposes is determined by the HMRC Statutory Residence Test, spending 183+ days in the UK in a tax year makes you UK resident; fewer than 16 days makes you non-resident. The middle ground requires the full SRT analysis
How to apply for NRL approval
- Apply using HMRC form NRL1 (individual landlords) or NRL2 (companies), available on the GOV.UK website
- Apply before leaving the UK, or as soon as you become non-resident
- HMRC will issue an approval notice specifying the date from which the letting agent (or tenant) can pay rent gross
- Notify your letting agent of the NRL approval immediately, provide a copy of the approval notice
- HMRC NRL approval does not remove your obligation to file a UK self-assessment tax return each year, it only removes the withholding obligation from the agent or tenant
Agent and tenant obligations without NRL approval
- Letting agent: must deduct basic rate tax (20%) from all rental payments (gross rent) and pay it to HMRC quarterly using the HMRC NRL Landlord Scheme forms
- The agent issues the landlord with a certificate of tax deducted (Form NRL6) each April, which the landlord uses to complete their self-assessment
- Tenant paying directly (no agent): if the quarterly rent exceeds �100 per week (~�5,200 per year), the tenant must register with HMRC and deduct tax. Below this threshold, tenants are exempt from the withholding obligation
- Agents who fail to comply with the withholding obligation are liable to HMRC for the unpaid tax, not the landlord
- The landlord can still recover overpaid tax via self-assessment, the withholding is a payment on account, not a final tax assessment
Self-assessment for non-resident landlords
- All non-resident landlords must file a UK self-assessment tax return each year, reporting UK rental income
- Allowable deductions: mortgage interest relief (restricted to 20% tax credit under Section 24), letting agent fees, repair costs, insurance, service charges, management costs, professional fees (accountant, legal)
- Personal allowance: non-resident individuals are generally not entitled to the UK personal allowance (�12,570 in 2025/26), unless they are a citizen of the UK, EEA, or a country with a relevant double taxation treaty
- Double taxation treaties: the UK has treaties with most countries that prevent double taxation of the same income, UK tax paid can typically be offset against tax payable in your country of residence
- Register for self-assessment as soon as you become a non-resident landlord, failure to file attracts automatic �100 penalty plus interest and late payment surcharges